(Yicai Global) Dec. 26 -- The central parity rate of China's yuan against the US dollar rose 267 basis points to 6.5416 today, its highest level since Sept. 13, up from 6.5683 on Friday.

The yuan has appreciated this year and is set to remain stable in the future, market participants said. The dollar's sluggish showing of late has prompted traders to exchange greenbacks for yuan, and insufficient liquidity from subdued market activity at year-end may have also sped up the yuan's rise, analysts noted.

The Chinese economy's fundamentals are stable and moving in a positive direction, assuring steady cross-border movement of capital. The country's manufacturing purchasing managers' index came in at 51.8 percent last month, the second-highest this year, up 0.2 percentage points from a month ago. It has been above the 50 level that marks the divide between growth and contraction for 16 months in a row.

"China's mean level of inflation will increase moderately next year, interest spread between it and the US will keep stable, and current account surplus will continue," Ying Xiwen, senior researcher at China Minsheng Banking Corp. [SHA:600016], predicted, adding that the mean level of the yuan's rate against the dollar will stay between 6.5 and 6.7 next year. The Chinese government's Central Economic Work Conference, which ended on Dec. 20, stressed that the yuan's exchange rate should remain stable at a reasonable balance.